Interbank market news scan: Foreign exchange and selected interest rates as of 9:18 am EST

Currency PairsRates as of 9:18am 31 March 2021
EUR/USD1.1725
AUD/USD0.7610
GBP/USD1.3769
USD/JPY110.7400
NZD/USD0.6995
USD/CHF0.9429
USD/NOK8.5181
USD/SEK8.7293
USD/CAD1.2607
  
Selected Rates 
Fed Funds.07
Bank prime rate3.25
Discount window.25
2-yr Treasury.14
10-yr Treasury1.73
30-yr2.43
Source: Reuters, Federal Reserve

Interbank market news scan: Foreign exchange rates, Fed Funds rate, and Treasurys as of 9:00 am EST

Currency PairsRates as of 9:00am 30 March 2021
EUR/USD1.1734
AUD/USD0.7615
GBP/USD1.3738
USD/JPY110.3600
NZD/USD0.6986
USD/CHF0.9919
USD/NOK8.5728
USD/SEK8.6901
USD/CAD1.2617
  
Selected Rates 
Fed Funds.07
Bank prime rate3.25
Discount window.25
2-yr Treasury.14
10-yr Treasury1.67
30-yr2.37
Source: Reuters, Federal Reserve

Interbank market news scan: Asia buffs up its foreign reserves …

Foreign exchange rates as of 26 February 2021, 8:29 EST

AUS/USD : .7950

GBP/USD: 1.4113

EUR/USD: 1.2193

USD/CAD: 1.2523

USD/JPY: 106.1000

USD/MXN: 20.6400

USD/NOK: 8.3953

USD/DKK: 6.0978

Source: OANDA

Bitcoin and Ethereum rates as of 26 February 2021, 8:29 EST

BTC/USD: 49,968.1

ETH: 1,596.59

Source: OANDA

Interest rates of interest ….

Effective Federal Funds Rate: .07

Prime Rate: 3.25

Discount Window Rate: .25

Two-year Treasury: .12

Ten-year Treasury: 1.38

Thirty-year Treasury: 2.24

Source: Federal Reserve

Follow the links …

Central banks in Asia’s emerging economies added $467.7 billion to their foreign-exchange reserves last year, the most since 2013 when the region’s markets were rattled by the taper tantrum. Asia’s Central Banks Build Taper Tantrum Levels of Reserves (bloombergquint.com)

As of 10:44 AST, Fed Funds and Treasury rates

RatesFederal Reserve as of 4 January 2021Bloomberg as of 5 January 2021 10:44 AST
Federal Funds Rate0.090.08
Prime Rate3.253.25
3-month Treasury0.090.07
2-year Treasury0.130.11
10-year Treasury0.930.93
30-year Treasury1.651.67
Source: Board of Governors of the Federal Reserve, Bloomberg

Legal/Political/Regulatory News Impacting Rates

None at this time.

So far, a quiet bond market …

As of 10:14 am AST 30 November 2020, U.S. Treasury rates and Federal Funds rates are as follows:

3-month: .08%

6-month: .09%

12-month: .10%

2-year: .15%

10-year: .85%

30-year: 1.58%

Fed Funds Rate: 0.08%

Federal Reserve Target: 0.25%

Prime Rate: 3.25%

Source: Bloomberg

Major political/legal events impacting currencies

On 27 November 2020, President Donald J. Trump nominated Brian P. Brooks as Comptroller of the Currency for a term of five years.  As Comptroller, Mr Brooks would be responsible for administering the United States’ national banking system as well as the branches of foreign banks doing business in the United States.  Mr Brooks is currently serving as acting Comptroller.  His nomination must be confirmed by the U.S. Senate.

Source: Executive Office of the President

As of 11:23 am AST 27 November 2020, U.S. Treasury rates and Federal Funds rates are as follows:

As of 11:23 am AST 27 November 2020, U.S. Treasury rates and Federal Funds rates are as follows:

3-month: .08%

6-month: .09%

12-month: .10%

2-year: .15%

10-year: .85%

30-year: 1.58%

Fed Funds Rate: 0.08%

Federal Reserve Target: 0.25%

Prime Rate: 3.25%

Source: Bloomberg

Major political/legal events impacting currencies

Basel Committee amends capital requirements for non-performing loan securitisations

The Basel Committee on Banking Supervision yesterday published the technical amendment Capital treatment of securitisations of non-performing loans. The rule, which the Committee started developing before the onset of the Covid-19 pandemic, closes a gap in the Basel framework by setting out prudent and risk sensitive capital requirements for non-performing loan securitisations.

The Committee consulted publicly on the technical amendment in June 2020. In contrast to the consultative proposal, the final rule permits banks to apply the external ratings-based approach to non-performing loans securitisation exposures, without the 100% risk weight floor. In addition, the final rule include discounts on tranche sales in the definition of discount incurred by the originating bank that factors in the capital requirements.

Committee jurisdictions agreed to implement the technical amendment by no later than January 2023. The Committee would like to thank all those who contributed time and effort to express their views during the consultation process.

Source: Bank of International Settlements

US Treasurys on eve of two-day holiday …

As of 12:01 pm AST 25 November 2020, U.S. Treasury rates and Federal Funds rates are as follows:

3-month: .08%

6-month: .09%

12-month: .10%

2-year: .16%

10-year: .86%

30-year: 1.59%

Fed Funds Rate: 0.08%

Federal Reserve Target: 0.25%

Prime Rate: 3.25%

Source: Bloomberg

Major political/legal event:

First-time unemployment claims increase

The number of first time unemployment claimants is still high. This morning the U.S. Department of Labor reported that 778,000 Americans filed for unemployment insurance for the first time during the week of November 21st, an increase of some 30,000 claimants from last week. Since the peak of 5,790,250 in April 2020, the moving average of total insured claimants has been trending toward the moving average level pre-Covid-19 but is still more than three times its March 14, 2020 pre-Covid-19 moving average level of approximately 232,500. The labor market still has a way to go before getting back to that point.

Source: U.S. Department of Labor

Bond yields relatively unchanged in light of Yellen pick as Treasury secretary

As of 9:58 am AST 24 November 2020, U.S. Treasury rates and Federal Funds rates are as follows:

3-month: .08%

6-month: .09%

12-month: .10%

2-year: .16%

10-year: .86%

30-year: 1.58%

Fed Funds Rate: 0.08%

Federal Reserve Target: 0.25%

Prime Rate: 3.25%

Source: Bloomberg

Major political/legal event in the United States

Biden to nominate Janet Yellen for Treasury secretary

Axios reports that presumptive U.S. president-elect, Joseph R. Biden, will announce later today his choice of Janet Yellen as U.S. Secretary of the Treasury.  Ms Yellen, 74, served as chairman of the Board of Governors of the Federal Reserve System from 2014 to 2018.

Source: Axios

President Trump releases statement on G20 leaders Summit; Latest Treasury yields …

As of 9:28 am AST 23 November 2020, U.S. Treasury rates and Federal Funds rates are as follows:

3-month: .07%

6-month: .09%

12-month: .10%

2-year: .16%

10-year: .85%

30-year: 1.55%

Fed Funds Rate: 0.08%

Federal Reserve Target: 0.25%

Prime Rate: 3.25%

Source: Bloomberg

Major political/legal event in the United States

On 22 November, the press secretary for the President of the United States issued the following statement at the G20 Leaders Summit:

“President Donald J. Trump participated in the second day of the virtual G20 Leaders Summit on November 22, 2020.  President Trump discussed the economic model he has enacted through cutting taxes and regulations, promoting abundant and affordable energy, and negotiating trade agreements grounded in the principles of fairness and reciprocity.  President Trump expressed the importance of policies that promote workers and families.  He also discussed the historic achievements made in the United States and around the world in empowering and investing in women, and called on all countries to do more.  President Trump thanked Saudi Arabia for its leadership during its G20 presidency and looked forward to working with Italy as incoming G20 president.  He also encouraged the G20 to continue to work together to achieve security, prosperity, and peace for all nations.”

Source: Executive Office of the President of the United States

Treasury secretary seeks $455 billion from Federal Reserve in order to return to Congress …

As of 9:31 am AST 20 November 2020, U.S. Treasury rates and Federal Funds rates are as follows:

3-month: .06%

6-month: .09%

12-month: .10%

2-year: .16%

10-year: .83%

30-year: 1.55%

Fed Funds Rate: 0.08%

Federal Reserve Target: 0.25%

Prime Rate: 3.25%

Source: Bloomberg

Major political/legal event in the United States

Yesterday, the U.S. Department of the Treasury released the following:

Today U.S. Treasury Secretary Steven T. Mnuchin sent a letter to Chairman of the Federal Reserve Board of Governors Jerome Powell requesting a 90-day extension of the Commercial Paper Funding Facility (CPFF), the Primary Dealer Credit Facility (PDCF), the Money Market Liquidity Facility (MMLF) and the Paycheck Protection Program Liquidity Facility (PPPLF). 

“With respect to the facilities that used CARES Act funding (PMCCF, SMCCF, MLF, MSLP, and TALF), I was personally involved in drafting the relevant part of the legislation and believe the Congressional intent as outlined in Section 4029 was to have the authority to originate new loans or purchase new assets (either directly or indirectly) expire on December 31, 2020. As such, I am requesting that the Federal Reserve return the unused funds to the Treasury. This will allow Congress to re-appropriate $455 billion, consisting of $429 billion in excess Treasury funds for the Federal Reserve facilities and $26 billion in unused Treasury direct loan funds,” said Secretary Steven T. Mnuchin.

“In the unlikely event that it becomes necessary in the future to reestablish any of these facilities, the Federal Reserve can request approval from the Secretary of the Treasury and, upon approval, the facilities can be funded with Core ESF funds, to the extent permitted by law, or additional funds appropriated by Congress. I am deeply honored to have worked on executing these programs and hope that because of our collective actions, Congress will show similar trust in Federal Reserve Chairs and Treasury Secretaries in the future.”

Source: U.S. Department of the Treasury